This paper tries to isolate the factors of creativity that affect innovation in the context
of IT industry in India. A systematic literature review has been carried out using PRISMA guidelines
as methodological procedure. The databases like Scopus, Google Scholar and ProQuest were
searched to find out pertinent literature with the inclusion criteria restricted to English-language
publications that had been published in peer-reviewed journals from 2010-2022. Reports,
publications written in languages other than English, and non-academic researches have all been
disqualified. The terms “factors of creativity,” “factors of innovation”, “factors of creativity and
innovation”,”hrm system and sustaining innovation” were used to search databases where the
terms “software industry in India” OR “IT industry in India” were specifically mentioned in the
abstract or title. There have been multiple stages to the literature selection process. Initially,
4385 articles were found with the search. The number of articles was lowered to 140 in the following
stage, which involved eliminating the articles based on their titles. Based on the abstracts, the
number is further whittled down to 41 articles. After closely examining the complete contents of
each article, finally 14 papers were selected to delineate the factors. An integrated conceptual
model has been developed which proposes the adoption of HRM system to foster employee
innovation behavior through two-way linkages with personal and organizational factors leading
to creativity and innovation. This paper provides insights to HR personnel in the Indian IT industry
intending to develop an HRM system that promotes and sustains innovation.

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